Retirees Drawing Down Nearly Half of Savings

Retirees maybe overspending their retirement savings, as 48% of the $9 trillion that people aged 65 and older have saved is being used for 4% or larger annual drawdown, according to Hearts & Wallets, a research company that looks at the spending patterns of various demographic age groups.

If this trend continues, many retirees may outspend their savings, the company said. In 2006, only 20% of retirement income was in drawdown mode. The richest retirees, those with $1 million to $2 million in assets, are taking income at an annual rate of 4% to 6% of their investment assets, including returns.